XCEL ENERGY INC 8-K

What Happened
Xcel Energy Inc. announced on Jan. 30, 2026 (filed Feb. 2, 2026) that it entered into a $1.5 billion 364‑day delayed‑draw Term Loan Agreement with U.S. Bank National Association as administrative agent and several lenders. Xcel drew $750 million under the facility to finance general corporate operations. The facility is unsecured and matures on Jan. 30, 2027.

Key Details

• Facility size: $1.5 billion 364‑day delayed‑draw term loan; $750 million drawn immediately, leaving $750 million available until maturity.
• Interest: Borrowings bear interest at either Term SOFR + 85 basis points or an alternate base rate.
• Covenant: Single financial covenant requiring consolidated funded debt to total capitalization ≤ 70%.
• Material terms: Unsecured; standard covenants (mergers, asset sales, liens); acceleration events include cross‑default to indebtedness > $75M, change of control, uninsured judgments ≥ $75M, ERISA and bankruptcy events. The full loan agreement is filed as Exhibit 10.01.

Why It Matters
This transaction provides Xcel with near‑term liquidity—$750M now and access to an additional $750M through Jan. 30, 2027—supporting general corporate needs without pledging assets. Interest cost will vary with market rates (Term SOFR + 85 bps as an option). Investors should note the leverage covenant (≤70% funded‑debt to capitalization) and acceleration triggers (including cross‑defaults above $75M), which could affect the company’s flexibility if debt levels or other defaults occur.